Client Perception Study Of Radio Advertisers An Honors Thesis by Robert R. Webb Thesis Director Ball State University Muncie, Indiana 24 March 1986 Graduation date: Spring, 1986 TABLE OF CONTENTS INT RODUCT I ON page EXECUT IVE SUMMARY 1-2 SURVEY METHODS 3 CRITERIA FOR SELECTING RADIO STATION 4-5 CRITERIA FOR JUDGING SALESPERSON 6-7 WHAT TO DO BETTER OR DIFFERENTLY 8 RADIO SALES FORCE RANKINGS 9 OUTSTANDING SALESPEOPLE 10 I NT RODUCT ION The following manuscript reports the key findings from a February 1986 study done for WMEE/WQHK by Robert R. Webb. The project attempted to determine advertisers' reasons for selecting a radio station to advertise with and their criteria for judging a salesperson. Data was also collected to determine which radio station( s) had the best salesforce. In addi tion, respondents were asked to name the outstanding individual radio salespeople in Fort Wayne. Finally, respondents were given an open-ended question that allowed them to list what else they would like radio salespeople to do that would make their advertising decisions easier. Hopefully, the findings of this study will enhance WMEE/WQHK's already strong training program. 1 EXECUTIVE SUMMARY To gain a representative sample of those who deal wi th radio salespeople, responses were obtained from advertising agency executives and from business people who handle their company's advertising decisions. The data collected from this combined group provides insight into their perceptions of radio salespeople. However, when data from these two groups is separated , it shows that agency people and advertisers sometimes have contrasting opinions about radio stations and their salespeople. When significant, these contrasting opinions will be pointed out. The study clearly showed that the most important reason for choosing a radio station to advertise with is the station's ratings. Also important was the cost of advertising. The merging of these two criteria, or cost per thousand, was the overwhelming factor named by agencies. 60% of the advertisers thought ratings and cost were the key criteria, but the rest used other criteria to determine which radio station to advertise wi tho Advertisers look at more than just CPM. The key findings in judging a radio salesperson center on the sa lesperson' s knowledge of his/her station, knowledge about the client's business, and problem solving ability. Agencies want salespeople to come to them armed with complete information about - the station's numbers, and then to relate those numbers into benefi ts for the agencies' clients. Advertisers want this service from salespeople, but they also pay much more attention to 2 personality, personal appearance, polished presentation, and relaxed manner when judging a radio salesperson. The study indicates that radio sa lespeople must be concerned wi th selling themselves to advertisers; whereas, agencies will tolerate less than ideal personal features as long as the salesperson is backed by numbers and can provide a solution to a problem. Among those agencies and advertisers represented in this study, WMEE/WQHK was overwhelmingly rated as having the most professional radio salesforce in Fort Wayne. Their combined salesforce was judged superior by 70% of those responding, far outdistancing their closest competitor, WOWO/WIOE who were named by only 15%. Roger Diehm of WMEE/WQHK received incredible support for being named the outstanding individual radio salesperson in Fort Wayne. Almost half the people responding listed Mr. Diehm. Finally, the open-ended question asking what else radio salespeople could do to make advertiSing decisions eaSier, produced a wide variety of answers. The most-suggested replies were predictable based on data collected from earlier questions. Agencies and advertisers want salespeople to be more attuned to their needs, have better knowledge of their station, and clearly show how benefits can provide solutions to problems. More unique suggestions will be listed later in this report. 3 SURVEY METHODS This report details the key findings of a study completed over a two week period in February 1986. 30 advertising agency executives and 20 advertisers provided answers for the 50 completed questi onnai res. All surveys were conducted by telephone, and the average survey was answered in 5-8 minutes. When determining the criteria for selecting a radio station to advertise with and for judging a radio salesperson, respondents were asked to rank each criteria on a scale of I to 5 where 1 was not at all important and 5 was very important. 1 = Not at all important 2 = Little importance 3 = Some importance 4 = Important 5 = Very important When determining perceptions of which radio station(s) had the most professional salesforce, a scale of I to 5 was used where I stood for not at all professional and 5 stood for very professional. I = Not at all professional 2 = Not very professional 3 = Somewhat professional 4 = Professional 5 = Very professional Mean scores will be used as a measurement in this report. A mean score is the average rating given a specific criteria by a response group - agencies, advertisers, or total respondents. 4 CRITERIA FOR SELECTING RADIO STATION Respondents were asked to rank 7 criteria on a scale of 1 to 5 to determine how they select a radio station to advertise with. The most important criteria was the station's ratings. 60% of the respondents felt ratings were the most important criteria. Advertisers didn't give as much importance to the ratings. 50% of them said ratings were most important, compared to 67% of the agencies. Cost was considered important by both groups, especially the agencies. Mean scores by advertisers were 3.9/5 and by agencies 4.3/5. The role of salespeople in determining which station to advertise with was disagreed upon significantly. 50% of the advertisers ranked them important to very important, compared to only 17% by the agencies. The same trend is evident with a station's on-air personalities. Here the difference is 55% to 27% by the agencies. Advertisers also give much more importance to personal contact with station management. The difference in mean scores is 2.9 to 2.1. Special promotions are just about equally important to both groups, receiving a total mean score of 3.4. A recommendation from an agency doesn't mean much to an advertiser who makes his own decisions. Most advertisers surveyed - did not dea 1 with agenci es, so they ranked thei r recommendation as having little or no importance. Agency people were more attentive to their client's recommendations. 57% said their client's 5 recommendation was a somewhat to very important criteria in selecting a radio station to advertise with. The major notion that surfaces from these questions is that agencies are mainly concerned with ratings and cost, or CPM. However, advertisers have more factors figuring prominently in the decision making process. They appear to be more people-oriented and less number-oriented. The management, salespeople, and on-air personalities of a station are all important criteria used by advertisers to determine which radio station to advertise with. - 6 CRITERIA FOR JUDGING SALESPERSON Respondents were asked to rank 9 criteria on a scale of I to 5 to determi ne how they judge a radio sa lesperson. Overall, the most important criteria was that a radio salesperson know his station. 90% of each group thought station knowledge was important to very important. Next was knowledge about their client's business. Ad vert isers stressed this point more than agencies, though. When asked to name the most important criteria in judging a radio salesperson, advertisers said it was equal between knowing the station and knowing their business. Agency people also expect knowledge about their business, but they don't stress it as much. Advertisers and agencies give mean scores of around 4.3 for the importance of problem solving ability and sincerity. These are traits they don't see enough of in radio salespeople, but they look for them ideally. The importance of promptness is agreed upon by both groups. No one listed it as the most important criteria, but it did receive a total mean score of 4.0. It's considered import ant and there is no reason it can't be attained. There is a significant difference of opinion about the next four criteria. Agencies consider all these to be on a range of somewhat important to very important, but advertisers emphasize - each of these more. They are personality, personal appearance or dress, polished presentation, and relaxed manner. 75% of the advertisers ranked personality as being important to very - 7 important in judging a salesperson. On the other hand, only 33% of the agencies saw it as being that important. The other 3 individual traits were each ranked about 25% higher by advertisers in terms of being important to very important. The findings of this study lead me to surmise that although a radio salesperson' s individual traits were ranked somewhat important to important by all respondents, advertisers are more watchful of everything about a salesperson and not just the information he/she has to give. Ideally, the individual traits mentioned should be cultivated and used to the salesperson's best advantage when dealing with all clients. The use of this information lies in its implications for salespeople who have a notion that all they have to do is recite their station's ratings and take the order. It's true that some sales are strictly a numbers buy; however, it seems foolish to risk losing a sale because of traits which could be improved upon. ,- 8 WHAT TO DO BETTER OR DIFFERENTLY This section reports the findings from the open-ended question, "What else would you like radio salespeople to do that would make your advertising decisions easier." Most responses centered on something that sa lespeople are doing to some extent, but could be doing better.